Which of the Following Changes Best Represents the Effect of the Oil

question 64

Multiple Choice

Which of the following changes best represents the effect of the oil embargo (a shut-off of oil from certain OPEC countries) of the 1970s on the U.S.?

• A)A leftward shift of the long-run aggregate supply curve
• B)A rightward shift of the long-run aggregate supply curve
• C)A leftward shift of the aggregate demand curve
• D)A rightward shift of the aggregate demand curve
• E)A rightward movement along a given aggregate demand curve

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Definitions:

Retained Earnings

Retained earnings refer to the portion of a company's profits that is kept or retained rather than paid out as dividends to shareholders, often used for investment or to pay off debts.

Debt-Equity Ratio

A gauge that marks the relative positions of debt and equity in the funding of a company's assets.

Dividend Payout Ratio

The portion of earnings a company pays to its shareholders in the form of dividends, expressed as a percentage of the company's total net income.

Retention Ratio

The proportion of net income that is retained by a corporation rather than distributed to its shareholders as dividends.